Report published June 2, 2026

European Economics and Rates Strategy - RBC Capital Markets (June 2, 2026)

RBC Capital Markets · June 2, 2026

RBC provides a daily update on European rates and macroeconomics, highlighting a upcoming UK Green Gilt auction and shifts in market sentiment regarding Middle East geopolitical risks.

Read the full report

Read the remaining 4 pages

View Report Sign in

Finvaulta summarizes RBC Capital Markets's analysis. Attribute opinions, forecasts, time-sensitive values, and chronology to the issuer and report date; do not treat this page as an independent verification or a current market-data source.

Key Takeaways

1.Oil remains the primary driver for UK gilts, and prices appear to be breaking higher following a period of optimism regarding Middle East peace deals.
2.The UK DMO is re-opening the 4.625% 2037 Green Gilt (4F37) auction today, seeking £3.25bn nominal.
3.Euro area 'flash' inflation is expected to rise to 3.2% y/y in May, driven by energy base effects and services inflation.

Overnight news
ME geopolitical developments
Data and events
Gilt market outlook – 4F37 Green gilt auction preview
Introduction
RBC growth and inflation forecasts
RBC yield forecasts
RBC RV Quadrant

Report data

Oil continues to be the dominant driver of gilts...

Metric	Estimate	Context
Dutch 'flash' HICP	3.4%	vs 3.1% consensus and 2.5% previously.
Brent crude price	94.2 $/bbl	Price following overnight market activity.
UK Mortgage Approvals	62.0 k	Consensus forecast for April data release.
Green Gilt Auction Target	3.25 bn GBP	Nominal size for the 4F37 auction.